Fed tightening won't hurt global economy, IMF's Lagarde says

As long as it is "properly announced" and "gradual," the Federal Reserve's monetary tightening won't cause serious problems for the world economy, said Christine Lagarde, managing director of the International Monetary Fund. If developing nations are threatened with fiscal shocks because U.S. interest rates rise quickly, they can protect themselves by imposing temporary capital controls, a move the IMF supports, she said.